Did you know...that the Official Receiver retains its right to ad valorem fees (relating to pre-conversion realisations) pursuant to the Companies (Fees and Percentages) Order (Cap 32C) (“Fees Order”) on conversion of a compulsory liquidation to a creditors’ voluntary winding-up.

Did you know...

it has been argued that a factoring arrangement over invoices of a company could be challenged as a charge over book debts and thus is void against liquidators of the company unless registered under section 80 of the Companies Ordinance.

As many will know, a failure to “...do all that is reasonable for the purpose of bringing the statutory demand to the debtor’s attention...” may result in an annulment of a bankruptcy order. But how is this requirement of Rule 46 of the Bankruptcy Rules met?

Did you know... that the court may, in special circumstances, exercise its discretion to appoint pre-existing receivers as a company’s provisional liquidators.

In the recent decision ofRe K Vision International Investment (Hong Kong) Limited, the Honourable Mr. Justice Barma confirmed that, where the circumstances require it, the court will exercise its discretion to appoint pre-existing receivers of a company’s assets as that company’s provisional liquidators provided that potential conflicts of interest are identified and appropriately addressed.

DID YOU KNOW...that interim fees incurred by provisional liquidators (including agents’ fees), previously thought to have been payable from the funds of an insolvent estate without formal taxation, are now required to be taxed.

Summary

The Protection of Wages on Insolvency (Amendment) Ordinance 2012 (the “Ordinance”) was passed by the Legislative Council on 18 April 2012 and came into force on 29 June 2012.

Under the Ordinance, the scope of the Protection of Wages on Insolvency Fund will be expanded to cover:

Foreign companies are frequently used to hold assets or other investments in Hong Kong. Some of these foreign companies are not registered under Part XI of the Companies Ordinance (“CO”) (“Unregistered Companies”). There are various reasons for not registering foreign companies in Hong Kong, including confidentiality and tax benefits. However, there may be some drawbacks to this approach.

Two guidance notes of relevance to the insurance industry were issued recently.

Did you know that the court's guiding principle on assessing remuneration for liquidators in respect of their administration of trust assets held by the company is similar to the principle applicable to liquidation work, that is, on a "value for money" basis rather than as an indemnity against cost?